2022 Real Estate Predictions: What to Expect From the Market
When COVID-19 took the world by storm in March 2020, there were many uncertainties. With all the chaos and unknowns, few could have predicted that the pandemic would ultimately spur one of the most competitive and tight housing markets in history. Between August 2020 and August 2021, home prices across the United States rose a record 19.9%.
While these prices have been a home seller's dream, it also made buying a home more difficult. So, what can home sellers and buyers expect in 2022? Read on to discover the national predictions for 2022. For a local predictions, read Denise Nakanishi's market update.
Bullish or Bearish?
When it comes to predicting markets, you will always have experts on both sides of the discussion.
Fannie Mae predicts that the medium home prices will see a rise of around 7.9% between the fourth quarter of 2021 and the fourth quarter of 2022. While this would mark a fall in the current price growth of the market, it would still represent a strong growth by historical standards of the real estate market. Ultimately, Fannie Mae's predictions have the housing market returning to steady levels of price appreciation.
In comparison to Fannie Mae's outlook on the 2022 real estate market, Zillow and Goldman Sachs forecast is bullish, while CoreLogic's forecast is bearish. Zillow predicted home prices jumping 13.6% and Goldman Sachs predicted 16%. While Zillow and Goldman Sachs are seeing a world where home prices soar in 2022, the real estate data firm CoreLogic is predicting only a small 2.2% home price growth.
Ultimately, it looks like the 2022 real estate market will still strongly favor home sellers rather than buyers. The supply of homes for sale is near record lows, and the gap between supply and demand is only widening. However, with the right real estate agent, finding a new home in 2022 is certainly possible.
Here in East Hawai`i, we face similar circumstances of supply and demand. For an in-depth analysis, read Denise Nakanishi's latest market update.